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During the month of August all pension multifunds reported positive results.
He Fund A registered an increase of 5.55% Meanwhile he Fund E showed an increase of 2.35%, according to a bulletin prepared by the consulting firm Ciedess based on data from the Superintendency of Pensions (SP).
The international recovery and the rise in the dollar had a positive influence on the results.
“It should be noted that the negative impact of divestments due to the exceptional withdrawal of pension funds was largely mitigated by the divestment strategy of the various Administrators, together with the measures adopted by the Central Bank”, the analysis detailed.
The riskiest funds, Types A and B, recorded gains of 5.55% and 4.73% respectively, while the moderate risk fund, Type C, presented a variation of 4.02%.
For their part, more conservative funds obtained positive results of 3.29% for Type D and 2.35% for Type E.
What happened to Funds A, B and C?
According to Ciedess, the monthly result of multifunds A, B and C is mainly explained by the return on investment in equity instruments -especially at the international level-, as well as the rise in the dollar. The latter, after recovering after the sharp fall registered in July in the framework of the approval process of the constitutional reform that allows the exceptional withdrawal of pension funds.
In particular, the markets have been affected by the uncertainty regarding the pandemic, being favored by the lifting of quarantines, the reopening of certain businesses and advances in an eventual treatment, while the inverse effect comes from the outbreaks and new closings.
Given the greater volatility due to the pandemic, it is the riskier funds that have taken the longest to recover from the falls suffered in March.
Considering the total losses due to the crisis, to date there is a recovery of 80% for fund A and 92% for fund B, while funds C, D and E have fully recovered.
Ciedess added in its newsletter that the world index (MSCI World Index) registered a rise of 6.53%, while the Dow Jones and S&P 500 indices obtained positive results of 7.57% and 7.01% respectively. In turn, the European (MSCI Europe) and Asia (MSCI EM Asia) indices showed returns of 3.90% and 3.09% respectively, while the Emerging Markets index (MSCI EM) presented a variation of 2, 00%.
For its part, investment abroad benefited from the 3.38% rise in the dollar, positively impacting the riskiest funds.
“In turn, at the local level, the IPSA registered a nominal drop of -6.22%, mainly explained by the result of actions belonging to the services and natural resources sectors,” commented the consultant.
What influenced the results of the more conservative funds?
The profitability of funds D and E is mainly explained “by the results of investments in local debt securities and the performance of foreign fixed income instruments,” explained Ciedess. TO
In this regard, a drop in interest rates on national fixed income instruments, positively impacting conservative funds through capital losses.
It should be noted that the total amount requested for the exceptional withdrawal of pension funds by affiliates according to the latest figures for August was equivalent to US $ 15,150 million, whose impact on the value of assets it was largely mitigated by the divestment strategy of the various Administrators, together with the measures adopted by the Central Bank.
Profitability 2020 and the last 12 months
According to Ciedess, In 2020 (January to August) there are positive results for the multifunds, except for Type A.
The riskiest funds, Types A and B, registered variations of -0.75% and 1.65% respectively, while the moderate risk fund, Type C, presents a gain of 3.92%.
For its part, the most conservative funds obtain positive results of 5.14% for Type D and 6.11% for Type E.
If we take as a reference the beginning of this crisis (February 19), the multifunds registered drops of -28% for Fund A, -23% for Fund B, -17% for C, -12% for D and – 6% for E in real terms.
However, Ciedess pointed out, “it is recorded that much of these losses, and even all of them in the case of funds C, D and E have been reversed after the returns of April, May, June and August ”.
The lowest accumulated real return recorded during the year was -22.95% for fund A, -18.99% for fund B, -15.16% for C, -11.95% for D and – 6.01% for E.
While, In the last 12 months, positive results have been observed for all the multifunds. The riskiest funds, Types A and B, registered returns of 8.79% and 7.70% respectively, while the moderate risk fund, Type C, presented an increase of 6.33%. For their part, the most conservative funds obtain gains of 3.49% for Type D and 2.46% for Type E.
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